ATC121004: Report of the Select Committee on Appropriations on the hearings on the Fourth Quarter Expenditure on the Dinaledi Schools Grant, the Technical Secondary Schools Recapitalisation Grant and the School Infrastructure Backlog Grant, dated 19 September 2012

Standing Committee on Appropriations

REPORT OF THE SELECT COMMITTEE ON APPROPRIATIONS ON THE HEARINGS ON THE FOURTH QUARTER EXPENDITURE ON THE DINALEDI SCHOOLS GRANT, THE TECHNICAL SECONDARY SCHOOLS RECAPITALISATION GRANT AND THE SCHOOL INFRASTRUCTURE BACKLOG GRANT, DATED 19 SEPTEMBER 2012

REPORT OF THE SELECT COMMITTEE ON APPROPRIATIONS ON THE HEARINGS ON THE FOURTH QUARTER EXPENDITURE ON THE DINALEDI SCHOOLS GRANT, THE TECHNICAL SECONDARY SCHOOLS RECAPITALISATION GRANT AND THE SCHOOL INFRASTRUCTURE BACKLOG GRANT, DATED 19 SEPTEMBER 2012

1. Introduction

The hearings formed part of the Committee’s ongoing interaction with national departments and provinces to monitor their spending patterns on conditional grants allocated to them. A framework for each grant sets out the purpose of the grant, measurable objectives, conditions, allocation criteria, and past performance, among other things. The goal of the Dinaledi Schools Grant is to raise the participation and performance, especially of black learners and girls learners, in mathematics and science. The strategic goal of the Technical Secondary Schools Recapitalisation Grant is to improve the condition of technical schools and modernise them to meet the teaching requirements of learners in the technical fields and increase the number of suitably qualified and technically skilled graduates from these schools. The purpose of the School Infrastructure Backlog Grant is to eradicate entire inappropriate schools and to provide basic services like water, sanitation and electricity to schools.

1.1 Terms of reference

The Committee invited the Department of Basic Education and the National Treasury on 9 May 2012 to make presentations on the provincial fourth quarter spending on the following conditional grants:

· Dinaledi Schools Conditional Grant;

· Technical Secondary School Recapitalisation Grant; and

· School Infrastructure Backlog Grant.

During a follow-up meeting on 29 May 2012, a delegation from the Department of Basic Education, led by the Deputy Minister, presented a more comprehensive report on the above-mentioned three grants, as requested by the Committee at the meeting of 9 May 2012.

In addition, the provinces of KwaZulu-Natal , Limpopo , Mpumalanga and the Western Cape were invited on 9 May 2012 to make presentations on their fourth quarter spending on the following grants:

· Dinaledi Schools Conditional Grant; and

· Technical Secondary School Recapitalisation Grant.

The provinces of KwaZulu-Natal and Limpopo did not attend the meeting on 9 May 2012. Subsequently, these two provinces briefed the Committee on their fourth quarter spending on the above two grants at the follow-up meeting on 29 May 2012.

2. Briefing by Department of Basic Education (DBE)

2.1 Dinaledi Schools Grant

The purpose of the Dinaledi Schools Grant (the grant) is to promote Mathematics and Physical Science teaching and learning, improving learner performance and teachers’ content knowledge of these subjects. The Department of Basic Education (DBE) reported that a total of R70 million had been allocated for the grant for the 2011/12 financial year, and had been transferred to the provinces, as follows:

Province

Total allocations

(R’000)

Total transfers as at Jan 2012

(R’000)

Total spent as at Mar 2012

(R’000)

% Spent of transfers

% Spent of total allocation

Eastern Cape

8 400

8 400

8 396

99.95%

99.95%

Free State

5 040

5 040

4 816

95.56%

95.56%

Gauteng

14 140

14 140

14 140

100.00%

100.00%

KwaZulu-Natal

12 320

12 320

13 543

109.93%

109.93%

Limpopo

7 140

4 998

607

12.14%

8.50%

Mpumalanga

6 440

6 440

5 696

88.45%

88.45%

Northern Cape

2 380

2 380

2 379

99.96%

99.96%

North West

7 420

7 420

6 584

88.17%

88.17%

Western Cape

6 720

6 720

6 683

99.45%

99.45%

TOTAL

67 858

67 858

62 802

92.55%

89.72%

The DBE reported that the following challenges were being experienced:

· Learner enrolment in Mathematics and Physical Science did not increase substantially over the years. This was presumably linked to low performance in these subjects.

· Learners were moving to other subjects away from Mathematics and Physical Science.

· A lack of capacity in provinces and at the DBE contributed to the slow pace of procurement and a lack of sufficient monitoring.

· The enrolment and learner performance in Dinaledi schools were not in keeping with the enormous capital outlay and intended outcomes.

The DBE recommended the following remedial actions to address these challenges:

· The grant must assist feeder schools in order to increase the supply of learners taking Mathematics. The project was further intended to expand to secondary schools situated near the identified Dinaledi schools by making use of the resources at Dinaledi schools.

· Provinces must ensure that the criteria for Dinaledi schools are maintained at all times, which is that 60 per cent of learners take Mathematics and 40 per cent take Mathematical Literacy.

· In order to improve monitoring and evaluation of Dinaledi schools, the DBE was in the process of capacitating the Dinaledi Schools and the Technical Secondary Schools Recapitalisation projects, developing it into a single dedicated unit at the national office.

· The funding model for Dinaledi schools was restricted to 500 schools. It was proposed that a differentiated model be used with funding for each school to be implemented on a sliding scale. As schools are resourced, their budget support is reduced with a sustainability plan in place, allowing for more schools to be included in the programme.

· At present, support in terms of the grant is limited to Grades 10 to 12 in identified Dinaledi schools. It was proposed that support be extended to Grades 8 and 9 to enhance teaching and learning in these subjects, improving understanding and affinity of learners. Support should include training of educators, learning and teaching support materials, motivational road shows and career guidance.

· Additional classes and motivational talks must be offered in order to increase the number of girl learners taking Mathematics and Physical Science.

· It was proposed that the Dinaledi budget be used to provide connectivity for the remaining 268 Dinaledi schools in addition to the 132 schools being provided for through the Telkom network.

· Dinaledi schools should be provided with digitised content that allows for interactive teaching, learning and evaluation and for exploring broadcasting solutions for curriculum content broadcasting as is currently provided in the Western Cape .

2.2 Technical Secondary Schools Recapitalisation Grant

The purpose of the Technical Secondary Schools Recapitalisation Grant (the grant) is to recapitalise up to 200 technical schools by –

· Building workshops;

· Refurbishing or re-designing workshops;

· Buying and installing new machinery and equipment; and

· Training and up- skilling teachers.

The Department of Basic Education (DBE) reported that a total of R210.5 million had been allocated for the grant for the 2011/12 financial year and expenditure by provinces had been as follows:

Province

Total allocations

(R’000)

Total transferred

(R’000)

Amount spent (excluding commitments)

% Spent on total allocation

% Increase/ Decrease from 2010/11

Eastern Cape

40 272

40 272

34 492

86%

22%

Free State

14 428

14 428

14 428

100%

10%

Gauteng

30 596

30 596

10 649

35%

-45%

KwaZulu-Natal

38 563

38 563

35 276

91%

-7%

Limpopo

31 894

31 894

11 043

35%

5%

Mpumalanga

21 464

21 464

21 780

101%

72%

Northern Cape

7 667

7 667

7 829

102%

24%

North West

17 015

17 015

7 662

45%

-42%

Western Cape

8 619

8 619

8 610

100%

6%

TOTAL

210 518

210 518

151 769

72%

-3%

Although the above table reflects that expenditure has declined by 3 per cent compared to the 2010/11 financial year, the DBE reported that, if financial commitments at the end of the year were taken into account, the overall expenditure would be at 92 per cent.

The DBE reported that the provinces of the Northern Cape , Free State and the Western Cape had transferred funds directly to schools for implementation. The DBE indicated that they had monitored the progress at these schools.

With regard to achieving service delivery targets, the DBE reported that the following provinces had achieved all their targets:

· Free State ;

· Mpumalanga ;

· Northern Cape ; and

· Western Cape (trained two more teachers than the target).

Gauteng was the worst-performing province in terms of delivery of outputs because all payments to suppliers had been withheld from February 2012, leading to suppliers not completing the work at 28 schools. The DBE further reported that, although Limpopo had the lowest expenditure, their outputs had been among the highest. This was because the province had paid the infrastructure costs through their infrastructure budget and not the grant funds.

The DBE reported that the following challenges had been experienced with the implementation of the grant:

· Delays in the development and approval of tender specifications for the building and refurbishment of workshops had resulted in annual targets not being met in Gauteng , the Eastern Cape , KwaZulu-Natal , Limpopo and the North West .

· Irregular monitoring, collection of data and reporting in Limpopo, Gauteng and the Eastern Cape had resulted in the absence of information to detect early warning signals for under-performance.

· The late development of the province’s and schools’ business plans had delayed the implementation of the grant in KwaZulu-Natal .

· Unrealistic projections in the business plans and the lack of skills to coordinate projects had resulted in the Eastern Cape not meeting its performance targets.

· The failure to consult other departments and directorates, such as Public Works an Infrastructure, had continued to delay the implementation of building workshops in the Eastern Cape , North West and Gauteng .

The DBE indicated that the following strategies were being implemented to address the above-mentioned challenges:

· Standard templates for procurement and uniform architectural building plans have been developed at provincial level.

· Monthly visits were being undertaken and implementing agencies had dual reporting. Schools also reported to the project manager on a monthly basis.

· The business planning process in KwaZulu-Natal has been improved to be completed earlier, with a January cut-off date.

· Business plans in the Eastern Cape have been reviewed in partnership with provincial departments such as Treasury and Public Works and other implementing agents.

· In the Eastern Cape , North West and Gauteng , business plans were developed and reviewed in consultation with provincial departments such as Public Works and infrastructure directorates.

According to the DBE, the gradual increase in funding has led to an increase of the projected outputs. Although overall expenditure had declined by 3 per cent, the increase in the outputs achieved was a sign that operational systems at provincial and school level were maturing and significant improvements in coordination could now be identified. In order to ensure that improvements were made and sustained, a dedicated unit to drive the implementation of the grant had been proposed.

2.3 School Infrastructure Backlog Grant

The Department of Basic Education (DBE) indicated that the School Infrastructure Backlog Grant (the grant) was also referred to as the Accelerated School Infrastructure Delivery Initiative (ASIDI). The purpose of the grant is to eradicate entire inappropriate schools and to provide basic services like water, sanitation and electricity to schools. In the 2011/12 financial year the budget had been divided as follows:

· R420 million for the eradication of 50 entire mud schools; and

· R280 million for the provision of basic services to schools.

The following work had been implemented during the 2011/12 financial year:

Province

Inappropriate

Electricity

Sanitation

Water

Eastern Cape

50

104

55

84

Free State

0

26

13

32

Gauteng

0

2

7

0

KwaZulu-Natal

0

0

83

10

Limpopo

0

4

40

38

Mpumalanga

0

47

0

0

Northern Cape

0

0

0

0

North West

0

0

16

6

Western Cape

0

7

21

3

TOTAL

50

190

235

173

The DBE reported that the Development Bank of Southern Africa (DBSA) had been appointed as the implementing agent (IA) for the 50 inappropriate schools in the Eastern Cape . However, only 49 schools were being implemented as one school was being implemented by the Eastern Cape Department of Education, and was removed from the ASIDI programme. The department further reported that Mvula Trust had been appointed to implement water and sanitation projects in Limpopo and the Eastern Cape and that Eskom had been appointed as the IA for electrification of schools in the Eastern Cape , Mpumalanga and Limpopo . The Department of Basic Education in the provinces of the Free State , Gauteng , KwaZulu-Natal and the Western Cape were the IAs for the 2011/12 financial year.

The DBE reported the total expenditure on the grant for the 2011/12 financial year, as follows:

Description

Allocation per project

R’000

Expenditure as at 31 March 2012

R’000

Deviation

R’000

% Spent

Inappropriate structures

420 000

48 353

371 647

11.5%

Sanitation

138 252

7 918

130 334

5.7%

Water

38 826

1 116

37 710

2.9%

Electricity

65 573

42

65 531

0.1%

Other

37 349

2 254

35 095

6.0%

TOTAL

700 000

59 683

640 317

8.5%

2.3.1 Inappropriate schools

The DBE reported that progress had been delayed on the construction of the 49 schools due to various challenges, including –

· Delays in the procurement of IAs and the finalisation of the Memorandum of Agreement (MOA);

· Delays, due to a conflict of interest, in the procurement of professional service providers ( PSPs ) to undertake scoping work;

· A dispute with contractors about their grading for qualification; and

· A prolonged adjudication process.

The DBE presented the following progress analysis on the 49 schools:

· The programme was behind schedule at all of the schools

· Progress at 16 of the schools was between 0.6 and 10 per cent.

· Progress at 24 of the schools was between 10.1 and 20 per cent.

· Progress at 6 of the schools was between 20.1 and 30 per cent.

· Progress at 3 of the schools was over 30 per cent.

· Notices had been issued and recovery plans produced for three contractors

· The DBSA was monitoring the implementation of the plans and would advise on subsequent steps.

· The DBSA had begun the process of terminating one contract.

· The availability of skilled labour had proven to be a challenge.

· The programme was contributing to socio-economic upliftment as many jobs were being created for locals.

· The availability of material suppliers had been identified as a risk factor.

2.3.2 Water and sanitation

· In Limpopo , 32 of the 40 sanitation projects had achieved practical completion and 32 of the 38 water projects had been completed.

· In the Eastern Cape, 49 of the 55 sanitation projects had achieved practical completion and 82 out of 84 schools had been provided with rain water harvesting tanks and related infrastructure. Twelve out of 38 projects had been connected to the municipal bulk water supply. None of the 49 projects identified for borehole connections were completed at the time of reporting.

· In KwaZulu-Natal , 28 out of the 83 projects for 2011/12 had been completed and 17 were between 60 and 90 per cent complete. Thirty eight projects had been handed over in March and April 2012 and were between 1 and 20 per cent complete.

· In the Western Cape , all projects had achieved final completion. These had been sanitation for 21 schools and the upgrading of water in three schools.

· In Gauteng , all seven sanitation projects had achieved practical completion.

· In the Free State , 11 of the 32 water projects and 11 of the 13 sanitation projects had achieved practical completion.

· In the Northern Cape , the scope in implementation was six water projects and 16 sanitation projects. All were still under construction.

2.3.3 Electrification

· The programme was behind in the provinces of the Eastern Cape , Mpumalanga and Limpopo , where Eskom was the IA. The reason given for this was the late conclusion of the Memorandum of Agreement (MOA) and advance payments. In addition, a shortage of registered bush clearing teams within Eskom and the presence of indigenous forests were hampering progress in the Eastern Cape Province .

· In Gauteng , two electrification projects had been implemented and both had reached practical completion.

· In the Free State , 22 out of 26 electrification projects had achieved practical completion.

· In the Western Cape the target for electrification had been seven schools and all seven had achieved final completion.

3. Briefing by Western Cape Education Department

3.1 Dinaledi Schools Grant

The Western Cape Education Department (WCED) reported that it had been allocated the amount of R6.7 million for the Dinaledi Schools Grant (the grant) for the 2011/12 financial year. Out of this they had spent a total of R6.6 million, or 95 per cent by 31 March 2012. The WCED further reported that the department had met all their targets for the 48 Dinaledi schools in the province and that they were working with 16 schools, who no longer qualified as Dinaledi schools, to get them back on the grant.

3.2 Technical Secondary Schools Recapitalisation Grant

The Western Cape Education Department (WCED) reported that it had been allocated the amount of R8.6 million for the Technical Secondary Schools Recapitalisation Grant (the grant) in the 2011/12 financial year. By 31 March 2012 they had spent 99.9 per cent of this, with a variance of R9 000. The department further reported that it had met all their targets in respect of building, refurbishing and equipping workshops and training educators.

4. Briefing by Mpumalanga Department of Education

4.1 Dinaledi Schools Grant

The Mpumalanga Department of Education (MDE) reported that, of the allocation of R6.4 million for the 2011/12 financial year, the department had spent R5.7 million, or 88 per cent by 31 March 2012. Learner Teacher Support Material (LTSM), as well as 175 computers, 908 science kits and 3600 calculators had been provided to schools. In addition, 24 principals and 96 educators had been trained in curriculum management and content knowledge.

With regard to challenges experienced with this grant, the MDE indicated that there was a high vacancy rate in office-based educators’ posts. The plan was to fill thirteen of these posts by the end of August 2012. The MDE also reported that planned training had been affected by the disengagement by members of a teacher union. The targeted weekly training was now changed to year training.

The MDE further reported that it planned to provide additional LTSM to schools in the 2012/13 financial year and to continue the training for educators on content knowledge of subjects.

4.2 Technical Secondary Schools Recapitalisation Grant

The Mpumalanga Department of Education (MDE) reported that the department had spent 100 per cent of the R21.8 million budget allocation for this grant in the 2011/12 financial year. A total of five projects had been implemented at a cost of R39 million. Of these projects, two had been completed, and the other three were 95 per cent, 90 per cent and 66 per cent completed, respectively.

The MDE further reported that it had initially planned to do fifteen projects but had to scale it down to five because of higher than anticipated construction costs. The capacity of the contractors to complete the work on time presented a further challenge, as well vacancies within the infrastructure unit and the high turnover rate of Works Inspectors at district level.

In order to address the above-mentioned challenges, the National Treasury had appointed a Technical Assistant who had assumed duty on 2 May 2012. The MDE also planned to fill three technical posts at their head office by 1 July 2012, and to appoint a Project Management Unit by the end of September 2012. This Unit would assist the MDE with planning; costing of scope of work, budgeting, monitoring and skills transfer to officials.

With regard to the plans for the 2012/13 financial year, the MDE indicated that they planned to complete the three unfinished projects and start construction on one new project. In addition, equipment for the workshops would be procured.

5. Briefing by KwaZulu-Natal Department of Education

5.1 Dinaledi Schools Grant

The KwaZulu-Natal Department of Education (KZNDE) reported that it had spent its full allocation of R12.3 million for the Dinaledi Schools Grant (the grant) in the 2011/12 financial year. In terms of achievements, the KZNDE reported that it had been able to deliver meaningful resources to schools according to the needs analysis by schools and according to what would impact on learner achievement. The department indicated that, due to cost cutting measures, the growth of the programme had not been matched by similar growth in administrative capacity. Personnel at district level monitored operations at school level due to administrative capacity constraints. The KZNDE was also reviewing the payment process in order to eradicate bottlenecks.

The KZNDE reported the following challenges with respect to the grant:

· Non-/late submission of claims by suppliers.

· Suppliers who indicated that they did not have adequate funds after securing an order number.

· Suppliers who were hesitant to supply remote schools despite being given the list of schools before quoting for the job.

· Suppliers who did not deliver on time.

5.2 Technical Secondary Schools Recapitalisation Grant

The KwaZulu-Natal Department of Education (KZNDE) reported that it had spent R36.7 million, or 95 per cent, of its R38.5 million allocation for the Technical Secondary Schools Recapitalisation Grant (the grant) in the 2011/12 financial year. The department had requested a rollover for the balance of R1.8 million, as the amount had been committed for equipment not in stock in the country.

The KZNDE reported the following challenges with respect to the grant:

· Suppliers not delivering timeously.

· Delivery of machinery delayed due to overseas specialised modern equipment.

· Shortage of equipment for specialised functions at schools.

· Implementing agents for infrastructure had to be changed due to non-delivery.

6. Briefing by Limpopo Department of Education

6.1 Dinaledi Schools Grant

The Limpopo Department of Education (LDE) reported that it had been allocated R7.1 million for the Dinaledi Schools Grant (the grant) for the 2011/12 financial year. Of the total allocated amount, R4.9 million had been received and R0.6 million, or 12 per cent, had been spent. The department further reported that it had applied for a rollover of R4.2 million for invoices received but not paid at year end due to section 100 payment processes. With regard to the remaining unspent and uncommitted amount of R2.3 million, the LDE explained that all supply chain management processes had been stopped when the department was placed under Section 100(1 )( b) administration. The Section 100 administration team could not process invoices for Learner Teacher Support Material (LTSM) because of ongoing investigations around the service provider. As a result, the service provider could not process the LTSM orders. The Section 100 administration had also led to disapprovals and late approvals of the planned activities.

6.2 Technical Secondary Schools Recapitalisation Grant

The Limpopo Department of Education (LDE) reported that it had been allocated an amount of R27.9 million for the Technical Secondary Schools Recapitalisation Grant (the grant) in the 2011/12 financial year. Of this amount the department had managed to spend R11 million and had requested a rollover of R9.4 million for invoices received but not paid by the end of the year due to Section 100 payment processes. With regard to the remaining uncommitted amount of R7.3 million, the LDE explained that all supply chain management processes had been stopped when the department was placed under Section 100(1 )( b). An amount of R3.8 million related to the fact that Section 100 administration team could not process invoices for Learner Teacher Support Material (LTSM) because of ongoing investigations around the service provider. As a result, the service provider could not process the LTSM orders. An amount of R3.5 million related to the procurement of equipment. The LDE had advertised, evaluated, adjudicated and recommended the appointment of the service provider, but the appointment could not be effected.

7. Briefing by National Treasury

7.1 Dinaledi Schools Grant

The National Treasury reported that three provinces ( Eastern Cape , Gauteng and Northern Cape ) had spent 100 per cent of their adjusted budget for this grant in the 2011/12 financial year. Limpopo Province had spent the least of all the provinces and had only spent R607 000, or 8 ,5 per cent of their allocation by 31 March 2012. According to the National Treasury, KwaZulu-Natal had over-spent by 9.9 per cent as a result of not budgeting properly for Learner Teacher Support Material (LTSM). The over spent amount of R1. 2 million would come out of the province’s equitable share allocation. The provinces of North West (11.8 per cent); Mpumalanga (11.6 per cent); Free State (4.4 per cent) and Western Cape (0.6 per cent) had under-spent by the percentages indicated in brackets.

With regard to challenges affecting expenditure, the National Treasury reported that procurement had initially been the responsibility of the national Department of Basic Education (DBE). However, due to various delays and challenges, provinces had been requested to handle their own procurement and they then had to wait for the modalities to be adjusted to enable them to procure directly. This had led to a large percentage of the allocations only being spent in the fourth quarter.

The National Treasury highlighted the following areas for improvement:

· Reporting on the grant needed to be more output focused. A direct measure of how many materials have actually been delivered to learners should be included.

· Reporting on the actual performance of Dinaledi schools needed to be credible in all provinces, specifically Gauteng , North West and Northern Cape .

· Certain provinces had indicated that not all their teachers were properly trained in mathematics and physical science. In this regard, Mpumalanga had requested assistance from UNISA to train teachers.

7.2 Technical Secondary Schools Recapitalisation Grant

The National Treasury reported that two provinces ( Free State and Mpumalanga ) had spent 100 per cent of their adjusted budget for this grant in the 2011/12 financial year. The Western Cape had under-spent by R9 000 or 0.1 per cent. The Northern Cape had over-spent by R162 000 or 2.1 per cent. The other five provinces had all under-spent as follows:

· Gauteng : R23.5 million (68.8 per cent);

· Limpopo : R21.3 million (65.9 per cent);

· North West: R10.5 million (57.7 per cent);

· Eastern Cape : R5.8 million (14.4 per cent); and

· KwaZulu-Natal : R3.3 million (8.5 per cent).

In response to a question from the Committee, the National Treasury indicated that the following requests for roll-overs had been received:

· Gauteng : R23.5 million;

· Limpopo : R9.5 million;

· North West: 10.5 million; and

· KwaZulu-Natal : R1.8 million.

The Eastern Cape Province had not requested any roll-over.

7.3 School Infrastructure Backlog Grant

The National Treasury indicated that this was a Schedule 7 grant. Funds were therefore not transferred to provinces, but spent directly by the national Department of Basic Education (DBE). The preliminary expenditure outcome indicated that, at 31 March 2012, the DBE had spent only R839 000 of the R700 million allocation for the 2011/12 financial year.

The National Treasury reported that the main reasons for the low spending had been the delay in appointing an implementing agent and then further delays in appointing contractors. The department indicated that the following progress in terms of delivery had been reported by the DBE as at 6 February 2012:

· The Development Bank of Southern Africa (DBSA), who was the implementing agent, had appointed contractors for the construction of all the schools.

· Sites had been handed over to the contractors on 12 and 13 January 2012.

· The DBSA had given contractors a period of seven months to complete all 49 schools. The anticipated completion date is 31 August 2012.

· Of the 38 schools where construction had started, 29 were on schedule at the time of the report. Eleven were scheduled to start later in the year.

8. Findings

During interaction with the Department of Basic Education, the National Treasury and provincial departments of education from the Western Cape , Mpumalanga , KwaZulu-Natal and Limpopo , the Committee made the following findings:

8.1 A lack of capacity within provinces and the Department of Basic Education

has contributed to the slow pace of procurement and a lack of sufficient monitoring in the Dinaledi Schools Grant.

8.2 The enrolment and learner performance in Dinaledi schools are not in keeping with

the enormous capital outlay and intended outcomes.

8.3 The significant under-spending on the Dinaledi Schools Grant and the Technical

Secondary Schools Recapitalisation Grant by the provinces of Limpopo , Gauteng and North West is of concern to the Committee. This will have a severe negative impact on service delivery targets in those provinces.

8.4 There has been huge under-spending by the Department of Basic Education on the

School Infrastructure Backlog Grant in the 2011/12 financial year. The Committee found this alarming when viewed in light of the lack of appropriate and safe school structures and the lack of basic services at many rural schools.

9. Recommendations

After interaction with the Department of Basic Education, the National Treasury and provincial departments of Education from the Western Cape , Mpumalanga , KwaZulu-Natal and Limpopo , the Select Committee on Appropriations recommends the following:

9.1 The Department of Basic Education should expedite the formation of a dedicated unit at national level to improve the monitoring and evaluation of the performance of the Dinaledi Schools Grant and the Technical Secondary Schools Recapitalisation Grant.

9.2 The Department of Basic Education should extend support, in terms of the Dinaledi Schools Grant, to Grades 8 and 9 in order to enhance teaching and learning in Mathematics and Science, thus improving understanding and affinity of learners.

9.3 The Provincial Department of Education in Limpopo should address their procurement challenges to avoid non-delivery of services by ensuring that services providers are appointed according to the supply chain management policy of the department and the Public Finance Management Act.

9.4 The Department of Basic Education should provide the Committee with a report with photographic evidence of the completed structures of the outstanding 38 schools in the Eastern Cape Province within two months after the adoption of this Report by the House.

Report to be considered

Documents

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